 "Transparent derivatives mechanism proposed to arrest onion price volatility")
With onion price volatility every year, experts suggest futures trading with an action plan based on a price band and forward trading with delivery-based settlement.
At times, farmers throw away their onion produce due to excess supply making the cost of taking this to the wholesale market higher than the prevailing price. It happened in Madhya Pradesh last year. On the other hand, consumers sometimes suffer due to soaring prices, due to supply shortage or trader cartelisation. Both situations occur frequently.
Annual production is 19-20 million tonnes, concentrated in a few states; the consuming states are many.
Several sowing cycles
